Shares in Associated British Foods (LON:ABF) have climbed higher in today’s session as the group updated investors on its full-year performance, posting a rise in revenue and profits. The Primark owner, however, lagged ‘significantly lower’ profits from its Sugar business next year.
As of 09:31 GMT, AB Foods’ share price had added 2.01 percent to 2,436.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.37 percent lower at 7,077.53 points. The group’s shares have given up more than a quarter of their value over the past year, as compared with about a six-percent dip in the Footsie.
AB Foods posts full-year results
AB Foods announced in a statement this morning that its revenue had inched one percent higher to £15.6 billion in the financial year ended September 15. The group’s adjusted operating profit meanwhile rose three percent to £1.04 billion during the reported period. Irish broadcaster RTE in its coverage of the news that the result was ahead of the analysts' average forecast of £1.38 billion given by Refinitiv data.
“This was another year of progress for the group,” AB Foods’ chief executive George Weston commented in the statement, adding that the company’s profit performance was driven by its Primark, Grocery, Agriculture and Ingredients divisions, which helped offset the decline in Sugar profit.
Group comments on next year outlook
Going forward, the FTSE 100 group cautioned that Sugar profit will continue to be ‘significantly lower’ next year, and flagged possible volatility in the sterling exchange rate “given a period of intense Brexit negotiations”.
“Taking these factors into account, at this early stage, we expect adjusted earnings per share for the group for the coming year to be in line with this year,” the Primark owner said.